A terrific week of poker in beautiful Kyiv, Ukraine is in the books. Kyiv's own Alexander Dovzhenko made a valiant effort, but came up just shy of taking the trophy, falling in the end to the man. Another casino called Slavutych was no less popular in Kiev. It started its operation in 2001 and quickly found its fans. In fact, Slavutych was a poker club, in which such types of poker as 7.

Heading to Kiev and want to have a good time, play in a Сasinos in Kiev, visit bars and experience Kiev nightlife, then this article will reveal the truth about what is allowed and prohibited in Kiev.

Is gambling legal in Ukraine?

Verkhovna Rada has several draft laws proposing to legalize the gaming business. The main suggestion of the Cabinet is to allow casinos in 4-5-star hotels (with at least 100 rooms), in airports, on racetracks and ship with Ukrainian registration. Slot machines may also be allowed, but only at the casino and there should be an inscription (same as on cigarettes) informing that the game may cause addiction.

Dmitry Dobrodomov, member of Ukrainian parliament, who has earlier suggested an alternative version of the law, said that according to the most conservative estimates the revenues from this business are at least several billion hryvnia. “I believe that for a number of reasons it is undesirable to pass a bill on the legalization of the gaming business the way the Cabinet of Ministers sees it. On the other hand, the lack of real work of law enforcement agencies in the areas where this business de facto works and is often protected by the law enforcers (!), suggests that the budget is losing huge money. In general, there are chances that this business will be legalized, since we need sources of income,” says Dobrodomov.

Despite the fact that it is illegal to gamble in Ukraine and in Kiev in particular, more than a thousand underground gambling establishments were found in the capital in 2017.

“For the year of 2017 illegal activity of 1124 different gambling establishments has been stopped; in 2016 the operation of 1,125 such establishments have been terminated,” said Sergei Vyazmikin, the first deputy head of the Defense Department of the National Police of Ukraine.

He added that in recent years, the number of openly operating illegal networks of “one-armed bandits” is declining. However, there is a tendency to disguise illegal activities under the guise of distributing state lotteries using computer equipment.

By the way, in the evenings one can see rather atypical audience on Chryslers near such establishments (this can be seen, for example, in the Solomenskiy district).

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They say that at night they bring roulette there. In Kiev the largest of such spots is located near the railway station; the bets start from $20K. Ordinary people cannot get there – one has to pass 5 doors to get to the gaming hall.

Another such place is located right at the entrance to the Obolon market. In such places, they sell ecstasy and other drugs right on the bar.

Premier Palace Casino

Casino Premier Palace, located in the building of a 5-star hotel with the same name was one of the last legal casinos in Kiev. In its appearance, this casino in many respects resembled the Moscow casinos, and in part even surpassed them. The features of the place were: face control, registration with the issuance of special cards that confirm the club membership. To enter the casino, one had to make a deposit of 500 dollars, which were subsequently exchanged for chips. The casino was oriented for VIP-players. Its total area was about 800 square meters. The gambling establishment contained 3 gaming tables for roulette, 8 for poker and 68 slot machines.

In March 2011, after a Swiss citizen committed suicide in the five-star Premier Palace Hotel, journalists who arrived to the site to find out the details of what happened, noticed a casino operating in the hotel, which according to the law from 2010 should have already been closed .

Knowing this, employees of the state service for combating economic crime sent inquiries about the activities of the casino to the prosecutor’s office, but it turned out that for a while the gambling establishment cannot be closed. This is an enterprise with foreign investments; it bought licenses before the ban on gambling was enforced. Therefore, according to the law, the licenses cannot be withdrawn until the expiration of the validity period (unless, of course, the casino violates other laws). Legitimacy of the establishment is also confirmed by one of the district courts of the Kharkov region and the Court of Appeal of the Kiev region. After the license expires, the casino will have to stop its operation.

Another casino called Slavutych was no less popular in Kiev. It started its operation in 2001 and quickly found its fans. In fact, Slavutych was a poker club, in which such types of poker as 7-Card Stud, Omaha, Texas Hold’em were available. There were 5 tables for the game; newcomers were offered some training. International poker tournaments were regularly held in the casino; it provided the institution with a constant influx of customers.

Kyiv Casino Laguna-2004 also operated quite long after the introduction of the ban on gambling on the territory of Ukraine. The license to operate the casino was acquired by foreign investors before the introduction of the current law, so the casino was allowed to operate till this license expires.

Split Casino offered not only a wide range of games, but also wide range of bets. There were 7 gaming tables for American roulette, poker (5,6,7-card, Russian) and blackjack. The gambling establishment was characterized by a high level of service and security. As for slot machines, there were 35 varieties in the Split casino. Visitors were offered additional range of services: secure parking, ATM services, customer support, etc.

At one time River Palace Casino was also popular in Kiev. However, due to improper executives’ policies, it quickly lost its appeal. The design of this gambling establishment was reminiscent of staying on the island: palms were arranged in the game rooms, the premises were bright and spacious, and the casino dealer was dressed in Hawaiian shirts.

Avalon Casino

Avalon is also one of previously operating casinos in Kiev. And although there is information that this casino was the largest and most attractive in the Ukrainian capital, with the high-quality service inherent in such institutions, the opinions of casino customers who visited it say the opposite.

According to reviews, this casino had not very hospitable staff and generally the attitude towards the customers of the institution left much to be desired. As for its offers, the range of games there was really decent.

Gambling is Illegal in Ukraine

So, to deduce everything we have to say that gambling is considered illegal in Ukraine. However, from time to time the parliament considers the possibility of its re-legalization.

That’s why we offer you to consider another way to entertain yourself.

Poker Kiev Ukraine Map

Nightlife Tours in Kyiv

Nightclubs in Ukraine are open mainly two days a week, on Fridays and Saturdays (these nights are called “for amateurs”, because true party cougars explore Kiev nightlife every evening). For those especially enthusiastic there are clubs that work 7 days a week: Caribbean Club and Coyote Ugly and numerous bars, of course. Exceptions to this rule are quite rare. In addition, it is worth keeping an eye on local holidays – the night before the holiday Kiev nightlife can be too overwhelming and clubs can be clogged up even on weekdays, and on Fridays or on Saturdays right after the holiday party establishments are empty. If you want bottle service in one of the best establishments of the city, it is better to book it by phone min 2 days in advance.

If you want to spend your Night in Kyiv fabulous, take a tour around Kiev bars with locals. They will show you the best ones. Check this out:

3-hour private Nightlife Tour will show you nightlife in Kiev with its best bars. You’ll have a fantastic time!

Contact Nightlife Guide in Kiev:

• +380 66 067 90 89 WhatsApp, Viber, SMS, Calls
• info@guideme.com.ua
• Skype: Guide me UA

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On 14 July 2020 the Ukrainian law “On State Regulation of Organising and Conducting Gambling” (Gambling Law) finally reached the end of its six-year journey to adoption. President Volodymyr Zelenskyy is expected to sign it into law soon, at which point it will formally become the cornerstone of a new regulated European market, lifting the ban introduced in 2009.

Alina Plyushch (pictured) and Dmytro Hotsyn of the gambling desk of law firm Sayenko Kharenko explain the nuances of the new Gambling Law.

The operator: general requirements

While both local and foreign investors will have access to the market, only legal entities registered in Ukraine may become gambling operators. However, certain ownership restrictions will apply.

In particular, gambling operators shall not be controlled by a Russian resident nor have a Russian person as a shareholder or Ultimate Beneficial Owner (UBO). Neither should they have shareholders registered in countries currently blacklisted by the Financial Action Task Force (FATF), in other words North Korea and Iran.

In addition, a gambling operator must have a share capital of at least $1.1m (UAH30.7m/£906,000/€1.0m). They must open a deposit account or obtain a guarantee from a Ukrainian bank for $1.2m, and they must have a dot.ua domain name.

More generally, gambling operators are also obliged to follow responsible gambling standards and implement policies to prevent gambling addiction.

The verticals

Land-based casinos

Casinos can be located in 5-star hotels with 150 rooms in Kyiv, 4- and 5-star hotels with 100 rooms in other cities, out-of-town resorts with a total area of at least 10,000 m2 or “special gaming zones” within territories to be defined by the Ukrainian government. Total casino areas in such zones must measure at least 10,000 m2.

In addition, the law creates investment licences. Holders of investment licences are exempt from licence fees for 10 years on condition that they construct a new 5-star hotel with 200 rooms in Kyiv or of 150 rooms in another city. Investment licences may help boost underdeveloped regions by offering an opportunity to turn them into tourist destinations.

Online casinos

Online casinos are covered by a separate licence.

There are no particular requirements to premises and retail presence for an online casino operator (except for being registered in Ukraine). Previous drafts provided for keeping the operator’s servers in Ukraine but this provision has been dropped.

However, additional requirements for online casino operators may be set out in the licensing conditions.

Betting

A single licence covers both land-based and online betting.

The minimum betting shop area shall be at least 50m2 and these shops may be located in 3-, 4-, and 5-stars hotels with 50+ rooms in Kyiv or 3-, 4-, and 5-stars hotels with 25+ rooms in other cities.

These strict location requirements limit materially the offline betting opportunities for the majority of potential punters. Because of this, regulated online betting is expected to skyrocket in the near future.

Slot machine halls

Slot machines are allowed in casinos (with a general casino licence) and in slot machine halls (covered by a separate licence).

Operators of slot machine halls may open the venues at 3-, 4-, and 5-stars hotels with 50+ rooms in Kyiv or 3-, 4-, and 5-stars hotels with 25+ rooms in other cities.

These halls are not allowed in cities with a population of less than 10,000 people and cannot be placed within 500 metres of educational establishments. Operators of slot machines are prohibited from using equipment manufactured before 2019.

Online poker

Under the Gambling Law, specific licences are issued for online poker.

Offline poker can take place only in casinos as a casino game or in the form of competitive poker, which is not considered a game of chance.

Licence fees and taxes

Licence fees

The first versions of the draft Gambling Law were criticised for the exorbitant licence fees. Lowering these was deemed essential by the majority of international gambling operators interested in the market. Thanks to the multilateral dialogue with all stakeholders, the final version of the Gambling Law features more moderate fees.

Online casinos – $1.1m for a five-year licence

Betting – $5.1m for a five-year licence and $5,100 annually per betting shop

Poker Kiev Ukraine Wikipedia

Slot halls – $1.2m for five-year licence and $1,000 annually per slot machine

Online poker – $850,000 for a five-year licence

For land-based casinos, a five-year licence will cost approximately $10.2m for casinos located in Kyiv and $5.1m for casinos in other locations.In addition, casino operators will pay equipment fees ranging from $30,000 for a roulette wheel, $15,000 for a gaming table and $1,000 for a slot machine.

Taxation

Ukraine’s parliament, the Rada, is yet to make a final decision on how it will tax gambling profits. Among the several taxation drafts proposed, the Rada is likely to vote for one that establishes a gross gaming revenue (GGR)-plus-corporate income tax regime.

GGR tax rates are expected to differ for each gaming vertical, ranging from 5% for betting to 10% for online casino and 12.5% for land-based casinos and slot machine halls.

Corporate income tax is set at 18% in Ukraine.

Practical issues

Increased licence fees for certain gaming verticals during the “transition period”

The Gambling Law provides that the licence fees for the online casino licence, betting licence and slot machine licence shall be tripled until the so-called “Online Monitoring System” is put in place.

The Online Monitoring System is a state-owned system of oversight and control allowing real-time monitoring of the national gambling industry. It is supposed to be launched within 30 months of the Gambling Law entering into force.

It is likely, though, that the launch may be delayed for technical reasons or due to financial hurdles. In this case, gambling operators may face significant increases in their licence costs for quite some period of time.

Lotteries: a market on the edge

The first draft of the Gambling Law regulated all gaming verticals including lotteries to avoid potential overlaps and lacunas.

However, the final wording was modified to exclude lotteries from the legal framework envisaged by the Gambling Law.

As a result, the lottery market remains under the umbrella of the outdated State Lotteries Law. Although separating gambling verticals is not unusual, it is questionable whether principles and restrictions of the gambling legislation can be efficiently harmonised with those of lotteries legislation.

In addition, the State Lotteries Law means that international lottery operators may be unable to access the local market. To rectify this, further changes in gambling regulations would be needed.

Last but not least, separating games of chance and lotteries (which are not legally considered as games of chance) may preserve the current market situation, where de-facto slot machines and betting services are marketed as “e-lotteries” and “sport lotteries”.

The market: what’s at stake?

It is hard to estimate the current turnover of the market in Ukraine because it is almost entirely black, though estimates put it at around the €1bn mark. A successful relaunch of the Ukrainian market might triple this figure.

The government, in turn, expects to bring in an additional $160m in extra revenues by the end of 2020 alone thanks to legalisation of the gambling industry.

However, the Ukrainian consumer might also want access to more sophisticated products from other markets. This may allow international investors to introduce more complex games into the local market and in turn enjoy higher levels of spending from Ukrainian players.

Despite the intricacies of the Gambling Law, we are confident that a questionable regulation that actually exists is better than a blueprint of the perfect one.